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robintek

Mar 01
Love0

OFFERING CONTINUED HEALTH PLAN COVERAGE TO DEPARTING EMPLOYEES WITH COBRA PORTABILITY PROVISION

By Employment Resources

An important federal law imposes certain obligations on many employers to continue providing health care coverage to an employee and dependents, if applicable, in the event of a change of employment or job status.

This law is often referred to as “COBRA” – The Consolidated Omnibus Budget Reconciliation Act of 1985. According to COBRA, if an employer provides health care benefits to an employee and there is a change in that employee’s job status, the employer must afford the ability to continue coverage under their employer’s group health plan, at the employee’s expense. The COBRA continuation requirements apply to all of the “core benefits” provided under any group health plan that furnishes medical benefits to employees and their dependents, regardless of whether the plan is insured or self-funded. COBRA does not apply to employers who have less than 20 employees.

COBRA was designed to address concerns about Health insurance portability during periods of unemployment and labor force withdrawal and in situations in which a worker leaves, or would like to leave a job. Under the rules, employers have important obligations to both apprise the covered employees and other qualified beneficiaries of their rights and to continue to supply the Health insurance coverage upon payment of the appropriate premium amount. The continued coverage must, in most cases, be supplied after the occurrence of a “qualifying event.” The premium charged by the employer can be no more than the employer’s actual cost, plus 2%.

An employee and his beneficiaries are eligible to elect COBRA only if they were covered by the employer’s health care plan immediately prior to a “qualifying event.” A “qualifying event” could be any of the following:

  • Termination of employment
  • Reduction in work hours
  • Employee’s death
  • Employee’s divorce
  • Loss of dependent status
  • Medicare entitlement
  • An employer’s filing of a bankruptcy proceeding (retirees and certain dependents only).

The most common qualifying event is the termination of employment. An employer is obligated to provide an employee with COBRA benefits in case of both voluntary and involuntary termination as well as reduction in work hours. Individuals who were covered by an employer’s group health plan are eligible to elect COBRA upon the occurrence of a qualifying event, no matter how long or short a time they were in the employer’s group health plan.

The time period for which continuation coverage must be offered by the employer varies. In the case of termination of employment or reduction of work hours, the employer is obligated to provide COBRA coverage for 18 months after the qualifying event. In case of the other qualifying events listed above, the coverage has to be provided for 36 months.

To fulfill COBRA obligations, it is the employer’s responsibility to notify the plan administrator (of the group health plan) of a qualifying event within 30 days of the actual event or by the date that the employee will lose their coverage, whichever is later. The employer should then see to it that the plan administrator notifies the beneficiary and his/her dependents, within the next 14 days, of their rights to continued coverage under COBRA. If the employer does not have access to COBRA administration services, the employer must ensure that the employee is provided with written notice of their rights within 44 days from the date of the event. Qualified beneficiaries are given a certain period of time (the “election period”) to elect continued coverage. This period lasts for at least 60 days, and may begin on different dates, depending on when coverage would otherwise be lost and when notices are given.

COBRA coverage is considered advantageous to most workers, as it allows them to continue coverage even after leaving or losing a job. Though they can be required to pay the entire entire premium, they can generally realize significant savings compared with the cost of purchasing equivalent insurance from the private insurance market. This is especially true for older workers, particularly those suffering from pre-existing conditions.

Mar 01
Love0

KNOW THE CAUSES OF MUSCULOSKELETAL INJURIES

By Workplace Safety

Musculoskeletal injuries and disorders are among the most common ailments in today’s workplace. According to the Bureau of Labor Statistics in 2002 they accounted for 487,900, or 34%, of the injuries and illnesses that resulted in days away from work. In addition to back injuries, musculosketal disorders like Repetitive Strain Injuries such as Carpel Tunnel Syndrome are now rampant in the computerized office.

The remarkable thing about these disorders is that we now know what causes many of them and how to prevent them. The risk factors for work-related musculoskeletal disorders are work postures and movements, repetitiveness and pace of work, force of movements, vibration, and cold temperatures.

Work postures and movements can cause discomfort and fatigue if maintained for long periods of time. Activities like standing for long periods of time can cause sore feet, general muscular fatigue, and low back pain. If you have to stand or sit for extended periods at your job, make sure that you do some warm up exercises before you begin, and actively change positions throughout the day.

Repetitive movements are hazardous because we use the same joints and muscle groups over a long period of time. Using computer keyboards for long periods of time can cause serious damage to arm and finger muscles and tendons. If you perform repetitive tasks in your job, try finding ways to vary the routine. Take short breaks or timeouts. Make sure you have the proper equipment and ergonomically correct furniture.

Force of movements refers to the amount of effort our bodies must use to lift objects. The weight of objects and manner in which we lift things can cause low back strain, even ruptured discs and hernias. If you lift heavy objects, learn how to bend, stoop and lift correctly. Even if you only lift one heavy box a year, learn how to do it safely.

Vibration might encourage musculoskeletal disorders because they affect muscles, tendons, joints and nerves. Think of the ultimate vibrating job, a jackhammer operator, and you get the picture of what damage vibrations may cause. If your job entails operating vibrating equipment, you should wear a set of insulated headphones. Make sure that you have the right gloves and shoes, as well. Also, make sure you know the acceptable operating time for your equipment, and never exceed that limit.

Cold temperatures or handling cold objects can cause numbing which may make us misjudge the amount of force we need to apply, and may cause our bodies to become less flexible. When that happens our positions and movements become awkward and stiff which can lead to more problems. If you work in a cold place, make sure that you dress appropriately and warmly. Wear proper gloves and clothing that allows for flexibility.

You can avoid the pain and crippling effects of musculoskeletal injuries and disorders in the workplace. Be informed. Be prepared. Be safe.

Mar 01
Love0

INFORMATION IS CRITICAL IN FIRST AID FOR CHEMICAL EXPOSURES

By Workplace Safety

Long before there is an accident involving exposure to harmful chemicals there should be a plan to deal with them. First, create a list of all chemicals in use in the workplace, their properties, and what to do in the case of an accident or exposure. Then make sure to have the necessary equipment and trained personnel to provide first aid treatment.

Accidents involving exposure to chemicals in the workplace are most likely to involve burns or eye injuries, although there have also been incidents where chemicals have been inhaled or ingested. If chemicals are inhaled and the person is unconscious, he should be resuscitated and immediately transported to a hospital.

In a case of chemical ingestion, it is a common misconception that antidotes of water, milk, charcoal, and other combinations can neutralize the ingested chemical. The correct procedure to dilute most chemical ingestions is to provide a small amount of water – about 8-10 oz. Any other procedure including inducing vomiting may cause more harm than good.

Being burned with chemicals is probably the most common accident involving chemicals in the workplace. It usually occurs when proper handling procedures are not followed, or when someone cuts corners. In some cases, even “empty” containers can cause problems and sometimes the person is not even aware that they have been burned until much later.

Normal first aid treatment for chemical burns is to flush the affected body part immediately and thoroughly using a large supply of clean fluid under low pressure for at least 15 minutes. However, this can be reduced or expanded depending on the severity and strength of the chemical. If irritation persists, repeat the flushing procedure. Follow- up medical analysis and treatment is always recommended.

In a case of eye contact with chemicals, the cause is usually improper handling of materials or not wearing protective eye gear like masks, goggles, or glasses. More often than not the contact is a splash or spill that makes contact with the eye.

The appropriate first aid response is to immediately rinse the eye with water at an eyewash station. Eyewash stations are required under health and safety legislation wherever chemicals are used. Rinse the eye(s) for at least a minute, and if still irritated rinse again. If problems persist, report the accident and proceed to the nurse’s station or the emergency room at the nearest hospital.

Caution is crucial when dealing with chemicals in the workplace. So is information. Know what you’re dealing with and how to treat accidents immediately. Your sight or your life just might depend on it.

Mar 01
Love0

CREATE AN UPDATED EMERGENCY PLAN FOR YOUR COMPANY

By Workplace Safety

Part of an effective health and safety plan should be a well-defined plan to deal with major emergencies. Would people know what to do in the case of an explosion at your workplace? Who would be in charge? Who would phone the fire department, the police, and the hospital? Is there an evacuation plan? What happens if the power goes out?

An emergency plan would answer all of those questions, hopefully long before the real emergency. It is much better to be prepared than to be surprised. For employees, it is better to know in advance what your responsibilities are in an emergency situation than to find out when disaster strikes.

A good emergency plan begins with a vulnerability assessment. This assessment shows the organization where potential risks are, helps identify what can be done to prevent such a situation, and outlines the immediate steps to be taken if the risk becomes a reality.

If an emergency does occur, then a set of procedures must be followed that will protect individuals and property. In the case of a fire the procedures might include:

  1. Declare that there is an emergency
  2. Sound the alarm
  3. Evacuate the danger zone
  4. Call for help
  5. Initiate rescue operations
  6. Attend to casualties
  7. Fight the fire, if absolutely necessary

To accomplish all of these steps there must be an emergency plan outlining individual authority and responsibility, all needed supplies and equipment, and a storage map that shows where they are located. Needed supplies might include everything from flashlights to back up generators, bandages to respirators. But most importantly, each employee must be trained and well informed of the emergency plan, as well as any role they are expected to play. However an emergency plan is designed, it must contain the following elements:

  • An evacuation plan that all staff is familiar with and an easy to follow route that must always be clear of obstacles.
  • Safe locations for employees to gather outside the emergency zone so that everyone can be accounted for.
  • An ability to treat any injuries, search for the missing, and simultaneously contain the emergency.
  • An alternate source of medical assistance when the normal facilities may be affected by the emergency.

If you don’t have an emergency plan at your workplace, it’s wise to devise one. If you do have a plan, find out what your role might be in the case of an emergency. At a minimum, know the plan and route so that you can evacuate, help others to do so, and prevent confusion at the last minute.

Mar 01
Love0

SEVEN KEY PRACTICES TO SIGNIFICANTLY LOWER ON-THE-JOB INJURY FREQUENCY RATES

By Construction Insurance Bulletin

The best way to prevent fleet crashes and in the process lower injury frequency rates is to hire drivers based on their ability and past performance. This discovery comes from Liberty Mutual Group, which recently released the results of its annual trucker survey.

As part of the study, the company identified practices in seven key areas that contributed to lower injury frequency rates:

1. Management Programs

  • Most companies that measure injury frequency rates have lower frequency rates.
  • Those companies that conduct driver surveys had frequency rates 18% lower than those that didn’t conduct surveys.
  • Although most companies conduct injury investigations, those that use written injury investigation forms, ask for prevention recommendations, calculate injury rates, set injury rate goals and track injury rates by customer had a 13% lower injury frequency rate.

2. Expectations

Four out of five companies have a written seat belt policy and close to 50% have both a written seat belt policy and enforcement activities. Those with both the policy and enforcement had a crash injury frequency rate that was 33% lower than those that didn’t use both.

3. Selection

  • Four out of five companies use a hiring checklist to document each step of the hiring process. Those using a hiring checklist had 30% lower injury frequency rates.
  • Four out of five companies have job descriptions that include essential job functions. Companies including essential job functions in the job descriptions had an 11% lower injury frequency rate.
  • Four out of five companies designate a medical provider. Those using designated medical providers had slightly lower injury frequency rates.

4. Monitoring Performance

  • Companies that provide technology for driver managers so they can verify available hours of service for drivers had a 37% lower crash injury frequency rate.
  • One out of four companies has GPS and uses it to monitor speed. These companies had a 15% lower crash injury frequency rate.
  • Two out of three companies conduct road observations. This practice results in a slightly lower injury frequency rate.

5. Transitional Work Programs

One out of four companies had someone responsible for tracking employees out of work and had written transitional work job descriptions. The group using both had a 7% lower injury frequency rate.

6. Injury Prevention

Most companies offer some form of injury prevention activities. Those that use an injury prevention manual provide regular training and have observations for enforcement had an injury frequency rate that was one-third of those that do not.

7. Training

Three out of four companies use written agendas for training. While written agendas are important, the survey found that injury frequency rates went down as the training group size became smaller. Those with written agendas and one-on-one training had a 30% lower injury frequency rate.

Mar 01
Love0

ENCOURAGE ON-THE-JOB SAFETY WITH EMPLOYEE INCENTIVE PROGRAMS

By Construction Insurance Bulletin

Employees know the risk of serious injury, or death, that can result from not following their employer’s safety regulations. However, knowing these consequences doesn’t always provide enough motivation to all employees to use approved safety procedures. To add an extra incentive, many companies have developed reward programs that give prizes to employees who follow safety rules.

These types of incentive programs work best if they have simple, well-defined rules. Well-designed programs allow employees to accrue points over time, so that they can save up for the prize they really want. However, to prevent employees from losing interest, the program should offer rewards every 30 days, or let employees “cash in” accrued points whenever they want.

The program should offer a variety of prizes. Employers can partner with a company that manufactures incentive prizes and choose the prizes they want to offer from catalogs this company would provide. When deciding on prizes, include a selection of items that can be acquired with a small number of points and those that require a larger amount. This variety will help to maintain employee interest in the program over time.

Though cash might seem to be a good incentive on the surface, it usually is not for this type of program. When employees receive cash for their accrued points, they generally use it for a functional purpose like bill paying. In order for an incentive program to be successful, the prizes should have a recreational purpose, like a t-shirt or picnic basket. However, gift cards usually work well in incentive programs, because employees can redeem them for items that they really want.

Base program reward points on the actions of individual workers, not on the actions of a department or line as a whole. If the incentives are team-based, employees might be pressured by their fellow workers not to report something that management should hear about, in order to avoid the possibility that the group would lose the incentive.

Once you start a safety incentive program, continuity is important, and the program should be terminated only for a really good reason. If an employer terminates the program because it becomes too expensive to administer, it runs the risk of employees’ low morale from this decision, and also sending the message that the employer isn’t placing a high value on safety. Sometimes employers cut incentive programs because the results are not what they expected. Remember, not every employee will choose to participate. Some will feel that the incentive program is silly or demeaning. However, those that participate will give their full support, and the safety of your workplace will increase as a result.

Mar 01
Love0

CHECKING YOUR SUBCONTRACTOR’S GENERAL LIABILITY POLICY LIMITS

By Construction Insurance Bulletin

One of the most important ways in which you make an impact on your bottom line is through risk management. The key to successful risk management is the identification of all instances of risk retention. These are circumstances in which you are responsible for all or part of the loss.

Any risk that you as the insured can’t transfer to another party is retained by default. The deductible on your insurance policy is a classic example of risk retention. This type of retention is characterized as “known,” because you know you’re responsible for paying the pre-determined deductible before your policy pays any additional exposures up to the policy limits. Any amount of potential loss over the policy limits is also a retained risk. However, this type of retention is categorized as “unidentified,” the amount of the loss has not yet been determined.

As a general contractor, it is imperative that you identify both of these types of retention so that you can adequately protect your company. The problem arises when it comes to determining the unidentified retentions. One area in which you might be extremely vulnerable is subcontractor negligence. You can purchase additional coverage for this contingency; but the more financially prudent course of action is to require your subcontractors to carry their own Liability insurance that provides enough coverage to completely replace what you are constructing.

Here are some recommendations for handling the issue of subcontractor negligence:

  • Require your subcontractors to carry their own insurance. Minimum acceptable policy limits should be specified in any subcontractor contract, and these minimum coverage requirements should reflect the size and scope of the project.
  • Request periodic certificates of insurance from your subcontractors showing that their coverage is current. This will help ensure continued compliance. Additionally, you should specify in the contract that the subcontractor’s General Liability coverage is the primary coverage for the project. This will reduce your coverage to Excess coverage, meaning it won’t come into play unless the subcontractor’s coverage is exhausted.
  • Consider using a subcontractor indemnity agreement as an additional option if permitted by local law. This is basically a promise by the subcontractor to reimburse you for any money you are forced to pay to the project owner because of the subcontractor’s negligence.
  • Have all of your contracts reviewed to make sure that your policy continues to meet your insurance needs.
Mar 01
Love0

WORKERS COMP SYSTEM AND HEALTH CARE SHARE PROBLEMS

By Business Protection Bulletin

Many of the same problems that plague the U.S. health care system are spilling over into Workers Compensation, including rising costs, an increased incidence of potential injuries brought on by an aging workforce and the obesity epidemic, and regulatory uncertainties. In a speech at the 62nd Workers Compensation Educational Conference, Robert Hartwig, president of the Insurance Information Institute (I.I.I.), outlined these and other challenges facing the Workers Compensation system over the next 10 to 20 years.

Hartwig first applauded businesses’ efforts that have radically reduced the frequency of workplace injuries in America. Successes on this front have:

  • Helped companies remain productive, by lowering the number of future lost workdays that result from permanently disabling injuries or fatalities.
  • Increased and preserved worker incomes — Seriously injured workers have lower lifetime earnings, a higher incidence of bankruptcy, and increased dependency on public assistance.
  • Maintained and improved the quality of workers’ home life — Seriously injured workers experience a higher incidence of divorce, substance abuse and depression.
    Hartwig then turned his remarks to problems facing the Workers Compensation system:
  • The never-ending cycle of reform, fraud, and abuse, which will be an endless driver of costs in the future.
  • The shift in balance between medical benefits and wage replacement — In 20 years, he predicted, 80%-85% of Workers Compensation benefits will be medical, and only about 15% will be for wage replacement. As a result, the Workers Compensation system will face the same problems as the health care system, but even more so, because the Workers Compensation system doesn’t have the same tools to control costs, such as deductibles and copayments.
  • The aging workforce — Fatality rates for workers ages 65 and older are triple that of workers ages 35–44. The workplace of the future will require a complete redesign to accommodate the surge in the number of older workers.
  • The obesity epidemic — In 2006, the most obese workers filed twice as many Workers Compensation claims and had 13 times more lost workdays than healthy-weight workers.
  • Regulatory issues — Health care reform will be a major theme in the 2008 elections, as it was in 1992, when proposals surfaced that Workers Compensation be rolled into the general health care system. This could happen again.

Though this information is sobering, Hartwig urged businesses to use it to their competitive advantage and work to head off problems before they occur, and not wait until injury patterns emerge to take action.

Mar 01
Love0

PREPARING FOR A WORKERS COMPENSATION AUDIT

By Business Protection Bulletin

You are scheduled for a Workers Compensation audit, and the dreaded time is drawing near. No fear. A little common sense and preparation will save you a lot of time, money, and frustration.

First and foremost, make sure you have scheduled the audit at a time that is convenient for you and allows you to devote a few hours to the audit. You should stay with the auditor the entire time. If you feel you have been pressured into meeting at an inconvenient time, call and reschedule. You will need to devote your full attention to the auditor, and to the auditing process.

Before the meeting, gather and organize your payroll reports, classification divisions, certificates of insurance, and overtime payroll records. You can summarize each of these beforehand and have the summaries ready for the review. This can help to streamline the audit process somewhat and assist you in more effectively communicating your business’ important information. Furthermore, if your calculations are well organized and can be reconciled to payroll stubs, W2s and other payroll records, the auditor will feel comfortable relying on your data.

Be prepared for the auditor to question you about the job duties and classifications of various employees. This is to be expected and should not alarm you.

If you have a question about proper classification, call your agent beforehand. Make sure you understand the different employee job classifications and have all of your employees properly classified. For instance, if an employee works 90% of the time in the office and 10% of the time outside of the office, the auditor can charge 100 % of the payroll for that employee to the outside sales classification, a higher-rated class.

Again, being prepared and working beforehand to have a good understanding of the different classifications is key to ensuring your audit goes smoothly.

Next, make sure you adjust payrolls, deducting bonus pay from any overtime pay. Also, be sure to apply the minimum and maximum payrolls to your calculations, if applicable. These maximums and minimums vary slightly depending on the career and on the state. The minimums and maximums also vary greatly for executive officers, sole proprietors, and even partners. Do your homework here and apply maximums and minimums where needed.

If you have issued any payments to subcontractors that do not have certificates of Workers Compensation, these payments may be charged against your Workers Compensation. If you did not get a copy of a subcontractor’s Workers Compensation certificate, you can get it before the audit as long as the certificate is current and shows the subcontractor was covered while working for you.

Once you’ve taken the time to gather the necessary information, organize it, summarize it, and relax. Auditors are not there to do you harm. Work with them; giving direct and honest answers to their questions backed by applicable paperwork whenever possible. When the audit is complete, request the audit worksheet from the auditor.

The good news is that you have the right to request a corrected audit in the event you feel any errors were made. You also have the right to recover any overpayments made during the three preceding audit periods.

Lastly, if an independent agent or broker represents you, ask the agent to review the final audit for accuracy. The audit should be checked against the current policy and against the general liability audit, making note of any discrepancies in payroll estimates and classifications.

Mar 01
Love0

INSURE YOUR SMALL BUSINESS TO AVOID HUGE LIABILITIES

By Business Protection Bulletin

So, you’ve decided to launch your own business. Good! This can be an exciting time for you and your family, but don’t forget about the risks. Protecting yourself from financial disaster is a must and will preserve your long hours of hard work and determination, not to mention your future.

There are three types of small business insurance you need, including one that is mandatory. Although most employers must provide Workers Compensation insurance for injuries and illnesses that are job-related, other coverage for business property and liability, though not required by law, is strongly recommended. This optional coverage protects your business’ property, equipment, and inventory as well as providing protection against potential liabilities.

Property Insurance

Property insurance can be purchased on the basis of the property’s actual value (replacement cost minus depreciation), its replacement value (cost of replacing an item without deducting for depreciation), or an agreed-upon amount (commonly used for art objects and other unique items). Basic Property insurance will generally cover losses in the event of fire or lightning strike and will pay the cost of removing property to protect it from further loss. Also, a standard Small Business policy will usually cover further losses from windstorm, hail, explosion, riot and civil commotion, and damage caused by aircraft, automobiles, or vandalism. Optional coverage can insure against earthquakes, floods, building collapse, and glass breakage. You can even insure your property by categories or by events such as fire, theft, or vandalism.

You should take a complete inventory of all your business property, determine its value, and decide what is worth insuring. Make sure the items you want to cover are provided for in the basic policy; if not, buy more coverage. For example, you’ll want to make sure your building is covered and your inventory, furniture, equipment, and supplies.

Liability Insurance

Liability insurance will protect your business assets in the event you are sued. These days, with lawsuits at an all-time high, you will want to maintain a proper amount of Liability insurance to protect yourself and the business you have worked hard to build. Liability insurance will not only pay the cost of the damages but will also pay the legal fees and other costs associated with your defense in a lawsuit. The expenses of defending yourself against such claims in court can be enormous, regardless of whether the lawsuit has merit.

Liability insurance will not protect you against claims arising from nonperformance of work, sexual harassment, wrongful termination of employees, or gender and race lawsuits. Therefore, it might be in your best interest to take out a Surety Bond as performance insurance. Employment Practices Liability insurance (EPLI) protects your business against employment-related claims such as sexual harassment and is a good idea to have.

Business Owners Policies

Many insurance companies have bundled property and liability coverage into a Business Owner Policy, or BOP. This policy provides broad coverage with affordable premiums. Even if you have a BOP, it is advisable to consider adding coverage that might otherwise not be included. Since no two businesses are alike, Property insurance can be tailored to fit your individual needs. Because businesses face different amounts of liability (accounting offices vs. contractors), it is advisable to obtain Liability insurance above and beyond a BOP when needed. We can help direct you according to your business’ specifics.

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